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Already Tops on TVs, Vizio Eyes Tablets

The interface on Vizio’s tablets and smartphones will resemble that of its Internet-connected televisions.

Apple‘s iPad controls the high end of the nascent tablet market, but Vizio seems to have its eyes on the lower end.

On Monday, Vizio, which made its name selling televisions, announced that it would begin selling an Android tablet with an 8-inch screen, a front-facing camera, HD video capability, and the ability to connect to HD televisions. It also announced that it would begin selling smartphones. The new devices will be on display at this week’s International Consumer Electronics Show, where many companies are planning to introduce their own tablets.

Matthew McRae, Vizio’s chief technology officer, promoted its intention to provide “the first true integrated ecosystem across multiple classes of devices,” where a user could begin watching a movie, for example, on a Vizio tablet, and then finish watching on a Vizio television. Both the smartphone and the tablet can be used as remotes for Vizio televisions.

But Vizio’s strongest selling point has always been its low price. And while it has not yet disclosed information about pricing, the company’s tablets are expected to cost much less than Apple’s iPad or Samsung’s Galaxy Tab.

Vizio’s impact on the television market should concern other tablet manufacturers, analysts said. Founded in 2002, the company focused on selling low-priced flat-panel televisions at a time when such products were out of the price range of most consumers. It quickly shot to the front of the pack. In the third quarter of last year Vizio was the top seller of LCD televisions in the United States, holding 19.9 percent of the market, according to iSuppli, a market research firm.

Vizio has not generally been at the early end of new trends — its competitors were selling Internet-connected televisions and 3-D TVs long before it was. Instead of early adopters, it has relied on relationships with low-cost retailers like Costco, Sam’s Club and Wal-Mart for distribution to reach the broader, lower end of the market. Its ability to secure technology at low costs, coupled with its ability to put its products in front of people who may not be considering a tablet computer because they seem too expensive, puts the company in a good position for success, said James McQuivey, an analyst at Forrester Research.

“What Vizio is going to do is go after those people who wouldn’t have bought a tablet for another two or three years,” Mr. McQuivey said. “That to me is exciting, because it is going to force everybody to up their game.”

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